The Supreme Court confirmed legitimacy of the “Procedure for analyzing the state of competition on markets”

The Supreme Court of the Russian Federation settled a principal dispute between FAS and “Urals Radio Stations” JSC in the part of the scope of analysis of the state of competition when investigating bid-rigging cases.

According to the claimant, FAS should perfume full analysis of the state of competition on the market for all cases, including bid-rigging cartels.

In this context, the claimant asked the Court to abolish the current analysis procedure that allows not carrying out complete market analysis of collusion concern only competitive bidding.

The FAS position is that market analysis is performed for the purposes of investigating a particular case on violating the antimonopoly law and the scope of analysis, specified in the “Procedure for analyzing the state of competition on markets” (approved by No. 220 FAS Order of 28.04.2010), suffices to ascertain all case circumstances. The Court agreed with FAS arguments.

To remind, on 4 July 2016 FAS found that “Urals Radio Stations” JSC and “Komplekt” Ltd., “Tekhtorg” Ltd. and “Urals Plants” Financial-and-Industrial Group” JSC violated Clause 2 Part 1 Article 11 of No. 135-FZ Federal Law “On Protection of Competition”.

“Not being able to rebut evidence collected by FAS on the case, “Urals Radio Stations” JSC attempted to invalidate one of the documents that determine the evidence process. Thanks to the Supreme Court ruling, FAS obtained an additional argument in support of its position”, commented Head of FAS Control and Inspection Department for public defence procurement Konstantin Aleshin.